There is an inverse relationship between the price-cost margin and the level of competition in a particular industry. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The decrease in demand faced by McDonalds during 2001-2002 can be attributed to: A) decrease in consumer preference for high-fat content food. B) increase in lawsuits. C) increase in competitive pressures. D) all of the above. ANSWER D
Date: September 10th, 2020
The additional incentive that the purchaser of a Treasury security requires to buy a long-term security rather than a short-term security is called the A) risk premium. B) term premium. C) tax premium. D) market premium. ANSWER B
Date: September 10th, 2020
The amount of money a firm pays to lease a building it uses for office space is called: A) the full opportunity cost of production. B) an explicit cost. C) a real cost of production. D) an implicit cost. ANSWER B
Date: September 10th, 2020
If an individual moves money from a money market deposit account to currency A) M1 increases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 increases and M2 decreases. ANSWER A
Date: September 10th, 2020
If capital inflows decrease due to higher interest rates in other countries and large amounts of import spending, there will be: A) upward pressure on a country’s exchange rate. B) downward pressure on a country’s exchange rate. C) no pressure on a country’s exchange rate. D) none of the above. ANSWER B
Date: September 10th, 2020
The president from which Federal Reserve Bank always has a vote in the Federal Open Market Committee? A) Philadelphia B) Boston C) San Francisco D) New York ANSWER D
Date: September 10th, 2020
The GDP deflator: A) measures the price changes of a fixed basket of goods and services. B) measures the price changes of all final goods and services produced. C) measures the price changes of just goods consumed by the household sector. D) none of the above. ANSWER B
Date: September 10th, 2020
If a bank has $200,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $80,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is A) $50,000. B) $40,000. C) $30,000. D) $25,000. ANSWER A
Date: September 10th, 2020
Expansionary monetary policy decreases the federal funds rate. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
